Fastenal - Comparative Multiple Analysis

Fastenal (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Fastenal

WikiWealth compares Fastenal's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Fastenal's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Fastenal.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Fastenal's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Fastenal's Analysis


How does this work? The Comparative Investment Analysis determines the value of Fastenal by comparing Fastenal financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Fastenal.

See the Fastenal cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Fastenal.

Also, see the Fastenal's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Fastenal's valuation conclusion for a quick summary.